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OSCE Seminar Enhances Armenian Legal Landscape of Crypto Finance
To strengthen Armenia’s regulatory framework for virtual asset service providers (VASPs), the OSCE organized a workshop from 25 to 27 June in Yerevan. Having brought together participants from the Financial Observatory and the Prosecutor General’s Office at the Central Bank of Armenia, the workshop aimed to strengthen regulatory compliance of VASPs operating in the country.
He focused on the operational dynamics of VASPs, their business models and the complex legal dimensions that govern crypto-assets. A team of OSCE experts provided an in-depth analysis of the current regulatory environment of virtual assets, for example, the applicability of existing regulatory measures on cryptocurrency transactions and the complexities of verifying ownership transfers on blockchain platforms.
In light of the rapid evolution of the industry, experts also discussed strategies to combat illicit financial activities in the cryptocurrency space. Participants analyzed the risks associated with cryptocurrencies compared to traditional fiat currencies and proposed robust mitigation strategies. To unearth patterns indicative of financial crimes within crypto transactions, they discussed the use of data analytics and effective methodologies to visualize transaction networks.
An expert from the National Bank of Georgia, who participated in the seminar, shared his experience on how Georgia developed a regulatory framework for VASPs with the support of the OSCE.
“The regulation of virtual assets and their service providers plays a crucial role in safeguarding financial systems from illicit activities. By establishing robust regulatory frameworks, we improve transparency, mitigate money laundering and terrorist financing risks, and promote an environment safer for innovation in the digital economy,” said OSCE Acting Senior Economic Officer Vera Strobachova-Budway.
“This workshop highlights the importance of collaborative efforts in establishing effective regulatory practices that balance innovation with responsibility, ensuring sustainable growth and integrity in the virtual asset sector,” he added.
The OSCE actively promotes international collaboration and knowledge sharing in the fight against financial crime and strengthens regulatory frameworks to ensure the integrity and security of global financial systems.
This workshop was part of an OSCE extra-budgetary project on “Innovative Policy Solutions to Mitigate Money Laundering Risks from Virtual Assets”, funded by Germany, Italy, Poland, Romania, the United Kingdom and the United States.